Belgaum: Rejecting suggestions that the ruling BJP was "sinking" in the Assembly poll-bound Karnataka, party president Rajnath Singh on Monday asserted that it would re-emerge victorious in the elections.

The "lotus (BJP's poll symbol) is blooming all over the country," Singh told reporters while replying to a query whether the "lotus is sinking" in Karnataka, the first ever southern state where the party grabbed power five years ago.

Singh, on a two-day campaign tour since yesterday for the May 5 Assembly Elections, said there were no differences within the party.

He said former party strongman BS Yeddyurappa, who has floated Karnataka Janatha Party after his exit from BJP, could have been reinstated as chief minister "if and when" he came clean in corruption cases against him.

When the Lokayukta had indicted him in corruption cases, the option left for Yedyurappa was to come clean from the court, Singh said. "It is unfortunate that Yedyurappa created his own party," he said but added it would not impact the BJP's electoral prospects.

Singh said the UPA Government had 'failed' on all fronts -- economic, internal and external security, diplomatic and strategic. The government has lost its control on price rise and inflation, he said.

Speaking on external security, he said China was 'encircling' India and had made incursions into the country's border but the UPA Government was not taking any action.

To a query, Singh said Gujarat Chief Minister Narendra Modi, being projected as a prime ministerial candidate, could not be branded as communal merely on the basis of the 2002 riots in his state.

He said a decision would be taken at an "appropriate time" on the issue of prime ministerial candidate.